The Reserve Bank of India is likely to have sold dollars before the local spot market opened on Thursday to support the rupee, three traders said.
The rupee declined to 91.98/dollar today, eclipsing its previous all-time low of 91.9650 hit last week, as persistent foreign capital outflows and corporate rush to hedge against further depreciation overshadowed impulses from a buoyant domestic economy. The one-month non-deliverable forward market had signalled a potential break past the 92/dollar level.
The currency has declined 2% so far this year and nearly 5% since US President Donald Trump imposed steep tariffs on India’s exports to its largest market.
